Sharp increase in silver investment demand

ETF HOLDINGS RISE 120% IN A YEAR TO CROSS 3,000 TONNE

- RAJESH BHAYANI

IN LESS THAN 18 months after being permitted in India, silver exchange-traded funds’ (ETFs) total holdings have crossed 3,000 tonne in December, up 120% from the year-ago period.

With silver spot prices ruling at over ~3.09 lakh per kg (₹3.25 lakh on MCX futures), investors have been flocking to it. The white metal gained 49% in a month and more than 200% in the past year.Given the sharp rise in prices, investors have increased their investments. A large chunk of the spot market demand for silver is still buying the physical metal for investment purposes.

According to data provided by the bullion research firm Metal Focus, silver ETF holdings were 1,380 tonne at the end of 2024. They have increased by 120% to cross 3,000 tonne in 2025. This means around a fourth of the silver imported in India has been picked up by ETF investors.